N-Q 1 d307894dnq.htm EATON VANCE CALIFORNIA MUNICIPAL INCOME TRUST Eaton Vance California Municipal Income Trust

 

 

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

811-09157

Investment Company Act File Number

Eaton Vance California Municipal Income Trust

(Exact Name of Registrant as Specified in Charter)

Two International Place, Boston, Massachusetts 02110

(Address of Principal Executive Offices)

Maureen A. Gemma

Two International Place, Boston, Massachusetts 02110

(Name and Address of Agent for Services)

(617) 482-8260

(Registrant’s Telephone Number, Including Area Code)

November 30

Date of Fiscal Year End

February 28, 2017

Date of Reporting Period

 

 

 

Item 1. Schedule of Investments

Eaton Vance

California Municipal Income Trust

February 28, 2017

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Municipal Securities — 152.6%

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Education — 8.9%

      

California Educational Facilities Authority, (Harvey Mudd College), 5.25%, 12/1/31

    $ 195      $ 221,038  

California Educational Facilities Authority, (Harvey Mudd College), 5.25%, 12/1/36

      330        374,065  

California Educational Facilities Authority, (Loyola Marymount University), 5.00%, 10/1/30

      745        806,321  

California Educational Facilities Authority, (Santa Clara University), 5.00%, 9/1/23

      1,600        1,875,648  

California Educational Facilities Authority, (University of San Francisco), 6.125%, 10/1/36

      235        276,670  

California Educational Facilities Authority, (University of the Pacific), 5.00%, 11/1/30

      630        703,036  

California Municipal Finance Authority, (University of San Diego), 5.00%, 10/1/31

      415        464,563  

California Municipal Finance Authority, (University of San Diego), 5.00%, 10/1/35

      285        319,434  

California Municipal Finance Authority, (University of San Diego), 5.25%, 10/1/26

      810        929,532  

California Municipal Finance Authority, (University of San Diego), 5.25%, 10/1/27

      850        968,601  

California Municipal Finance Authority, (University of San Diego), 5.25%, 10/1/28

      895        1,014,840  

University of California, Prerefunded to 5/15/19, 5.25%, 5/15/39

      895        978,083  
     

 

 

  
      $ 8,931,831  
     

 

 

  

Electric Utilities — 8.5%

      

Chula Vista, (San Diego Gas and Electric), 5.875%, 2/15/34

    $ 270      $ 295,337  

Los Angeles Department of Water and Power, Electric System Revenue, 5.25%, 7/1/32

      2,170        2,294,080  

Northern California Power Agency, 5.25%, 8/1/24

      1,500        1,662,135  

Sacramento Municipal Utility District, 5.00%, 8/15/27

      995        1,143,454  

Sacramento Municipal Utility District, 5.00%, 8/15/28

      1,335        1,533,554  

Southern California Public Power Authority, (Tieton Hydropower), 5.00%, 7/1/35

      680        750,251  

Vernon, Electric System Revenue, 5.125%, 8/1/21

      775        836,729  
     

 

 

  
      $ 8,515,540  
     

 

 

  

Escrowed/Prerefunded — 12.7%

      

California Department of Water Resources, Prerefunded to 6/1/18, 5.00%, 12/1/29

    $ 715      $ 753,074  

California Educational Facilities Authority, (Claremont McKenna College), Prerefunded to 1/1/19, 5.00%, 1/1/39

      3,135        3,368,024  

California Educational Facilities Authority, (University of Southern California), Prerefunded to 10/1/18, 5.25%, 10/1/39

      2,490        2,665,271  

California Health Facilities Financing Authority, (Providence Health System), Prerefunded to 10/1/18, 6.50%, 10/1/38

      1,475        1,606,452  

Sacramento Municipal Utility District, Prerefunded to 8/15/21, 5.00%, 8/15/27

      340        394,230  

Sacramento Municipal Utility District, Prerefunded to 8/15/21, 5.00%, 8/15/28

      460        533,370  

San Mateo Union High School District, (Election of 2006), Prerefunded to 9/1/23, 5.00%, 9/1/27

      665        798,000  

San Mateo Union High School District, (Election of 2006), Prerefunded to 9/1/23, 5.00%, 9/1/28

      1,130        1,356,000  

Tustin Community Facilities District No. 07-1, Prerefunded to 9/1/17, 6.00%, 9/1/37

      500        513,465  

University of California, Prerefunded to 5/15/19, 5.25%, 5/15/39

      355        387,955  

Vernon, Electric System Revenue, Prerefunded to 8/1/19, 5.125%, 8/1/21

      335        358,303  
     

 

 

  
      $ 12,734,144  
     

 

 

  

General Obligations — 29.5%

      

California, 5.00%, 10/1/31

    $ 1,885      $ 2,186,355  

California, 5.50%, 11/1/35

      1,600        1,818,512  

California, 6.00%, 4/1/38

      750        827,677  

Escondido, 5.00%, 9/1/36

      1,000        1,140,340  

Montebello Unified School District, (Election of 2016), 5.00%, 8/1/41

      2,000        2,275,180  

Palo Alto, (Election of 2008), 5.00%, 8/1/40

      3,655        4,052,883  

Redondo Beach Unified School District, (Election of 2012), 4.00%, 8/1/40

      1,000        1,025,270  

San Bernardino Community College District, 4.00%, 8/1/30

      2,890        3,085,277  

San Dieguito Union High School District, (Election of 2012), 4.00%, 8/1/30

      1,545        1,650,338  

San Jose-Evergreen Community College District, (Election of 2010), 5.00%, 8/1/35

      860        976,530  

San Mateo Union High School District, (Election of 2006), 5.00%, 9/1/27

      650        761,521  

San Mateo Union High School District, (Election of 2006), 5.00%, 9/1/28

      1,100        1,281,214  

 

1

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Santa Clara County, (Election of 2008), 5.00%, 8/1/39(1)

    $ 3,180      $ 3,455,579  

Santa Clarita Community College District, 4.00%, 8/1/46

      2,500        2,565,175  

Torrance Unified School District, (Election of 2008), 5.00%, 8/1/35

      2,150        2,420,943  
     

 

 

  
      $ 29,522,794  
     

 

 

  

Hospital — 11.1%

      

California Health Facilities Financing Authority, (Catholic Healthcare West), 5.25%, 3/1/27

    $ 1,000      $ 1,123,930  

California Health Facilities Financing Authority, (Catholic Healthcare West), 5.25%, 3/1/28

      190        213,079  

California Health Facilities Financing Authority, (City of Hope), 5.00%, 11/15/32

      635        706,495  

California Health Facilities Financing Authority, (City of Hope), 5.00%, 11/15/35

      910        1,005,878  

California Health Facilities Financing Authority, (Memorial Health Services), 5.00%, 10/1/27

      2,000        2,276,160  

California Health Facilities Financing Authority, (Memorial Health Services), 5.00%, 10/1/33

      1,000        1,123,020  

California Health Facilities Financing Authority, (St. Joseph Health System), 5.00%, 7/1/33

      1,145        1,291,102  

California Health Facilities Financing Authority, (St. Joseph Health System), 5.00%, 7/1/37

      535        597,333  

Washington Township Health Care District, 5.00%, 7/1/32

      2,780        2,799,154  
     

 

 

  
      $ 11,136,151  
     

 

 

  

Insured-Education — 1.5%

      

California Educational Facilities Authority, (Santa Clara University), (NPFG), 5.00%, 9/1/23

    $ 1,250      $ 1,465,350  
     

 

 

  
      $ 1,465,350  
     

 

 

  

Insured-Escrowed/Prerefunded — 17.8%

      

California Statewide Communities Development Authority, (Sutter Health), (AMBAC), (BHAC), Prerefunded to 5/15/17, 5.00%, 11/15/38(1)

    $ 5,000      $ 5,047,000  

Foothill/Eastern Transportation Corridor Agency, (AGC), (AGM), Escrowed to Maturity, 0.00%, 1/1/26

      5,130        4,150,785  

Glendale, Electric System Revenue, (AGC), Prerefunded to 2/1/18, 5.00%, 2/1/31

      2,790        2,899,870  

Riverside Community College District, (Election of 2004), (AGM), (NPFG), Prerefunded to 8/1/17, 5.00%, 8/1/32

      2,005        2,042,574  

San Diego County Water Authority Certificates of Participation, (AGM), Prerefunded to 5/1/18, 5.00%, 5/1/38(1)

      3,500        3,674,930  
     

 

 

  
      $ 17,815,159  
     

 

 

  

Insured-General Obligations — 4.8%

      

Cotati-Rohnert Park Unified School District, (BAM), 5.00%, 8/1/39

    $ 1,000      $ 1,117,890  

Sweetwater Union High School District, (Election of 2000), (AGM), 0.00%, 8/1/25

      4,720        3,728,564  
     

 

 

  
      $ 4,846,454  
     

 

 

  

Insured-Lease Revenue/Certificates of Participation — 4.4%

      

Anaheim Public Financing Authority, (Public Improvements), (AGM), 0.00%, 9/1/17

    $ 4,410      $ 4,389,582  
     

 

 

  
      $ 4,389,582  
     

 

 

  

Insured-Special Tax Revenue — 5.4%

      

Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/45

    $ 4,850      $ 941,725  

Successor Agency to Dinuba Redevelopment Agency, (BAM), 5.00%, 9/1/28

      370        427,302  

Successor Agency to Rosemead Community Development Commission, (BAM), 5.00%, 10/1/27

      1,440        1,696,867  

Successor Agency to San Francisco City and County Redevelopment Agency, (NPFG), 5.00%, 8/1/41

      2,100        2,370,774  
     

 

 

  
      $ 5,436,668  
     

 

 

  

Insured-Transportation — 8.9%

      

Alameda Corridor Transportation Authority, (AMBAC), 0.00%, 10/1/29

    $ 5,000      $ 2,938,950  

Alameda Corridor Transportation Authority, (NPFG), 0.00%, 10/1/31

      4,500        2,581,470  

Puerto Rico Highway and Transportation Authority, (AGC), 5.25%, 7/1/41

      740        786,361  

San Jose, Airport Revenue, (AGM), (AMBAC), (BHAC), (AMT), 5.00%, 3/1/37

      1,275        1,279,412  

San Jose, Airport Revenue, (AGM), (AMBAC), (BHAC), (AMT), 6.00%, 3/1/47

      1,350        1,356,007  
     

 

 

  
      $ 8,942,200  
     

 

 

  

Lease Revenue/Certificates of Participation — 1.0%

      

California Public Works Board, 5.00%, 11/1/38

    $ 915      $ 1,026,685  
     

 

 

  
      $ 1,026,685  
     

 

 

  

Other Revenue — 0.4%

      

California Infrastructure and Economic Development Bank, (Performing Arts Center of Los Angeles), 5.00%, 12/1/32

    $ 385      $ 394,521  
     

 

 

  
      $ 394,521  
     

 

 

  

 

2

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Senior Living/Life Care — 1.6%

      

ABAG Finance Authority for Nonprofit Corporations, (Episcopal Senior Communities), 6.00%, 7/1/31

    $ 290      $ 320,180  

California Statewide Communities Development Authority, (Southern California Presbyterian Homes), 7.25%, 11/15/41(2)

      600        663,306  

California Statewide Communities Development Authority, (The Redwoods, a Community of Seniors), 5.125%, 11/15/35

      535        609,927  
     

 

 

  
      $ 1,593,413  
     

 

 

  

Special Tax Revenue — 18.7%

      

Aliso Viejo Community Facilities District No. 2005-01, Special Tax Revenue, (Glenwood at Aliso Viejo), 5.00%, 9/1/30

    $ 770      $ 856,902  

Brentwood Infrastructure Financing Authority, 5.00%, 9/2/26

      285        291,145  

Brentwood Infrastructure Financing Authority, 5.00%, 9/2/34

      460        468,271  

Fontana Redevelopment Agency, (Jurupa Hills), 5.60%, 10/1/27

      1,590        1,596,789  

Los Angeles County Community Facilities District No. 3, (Valencia/Newhall Area), 5.00%, 9/1/22

      240        273,038  

Los Angeles County Community Facilities District No. 3, (Valencia/Newhall Area), 5.00%, 9/1/23

      480        546,744  

Los Angeles County Community Facilities District No. 3, (Valencia/Newhall Area), 5.00%, 9/1/24

      240        273,372  

Los Angeles County Community Facilities District No. 3, (Valencia/Newhall Area), 5.00%, 9/1/25

      335        381,113  

Los Angeles County Community Facilities District No. 3, (Valencia/Newhall Area), 5.00%, 9/1/26

      240        273,036  

San Francisco Bay Area Rapid Transit District, Sales Tax Revenue, 5.00%, 7/1/28

      2,400        2,654,952  

Santa Clara Valley Transportation Authority, Sales Tax Revenue, 5.00%, 4/1/34

      1,500        1,725,705  

Santa Clara Valley Transportation Authority, Sales Tax Revenue, 5.00%, 4/1/36

      1,250        1,429,362  

South Orange County Public Financing Authority, Special Tax Revenue, (Ladera Ranch), 5.00%, 8/15/27

      485        540,358  

South Orange County Public Financing Authority, Special Tax Revenue, (Ladera Ranch), 5.00%, 8/15/28

      725        804,707  

Successor Agency to La Quinta Redevelopment Agency, 5.00%, 9/1/28

      1,600        1,838,032  

Successor Agency to San Diego Redevelopment Agency, 5.00%, 9/1/31

      2,000        2,332,360  

Successor Agency to Union City Community Redevelopment Agency, 5.00%, 10/1/32

      1,360        1,559,077  

Successor Agency to Union City Community Redevelopment Agency, 5.00%, 10/1/36

      800        901,640  
     

 

 

  
      $ 18,746,603  
     

 

 

  

Transportation — 13.8%

      

Bay Area Toll Authority, Toll Bridge Revenue, (San Francisco Bay Area), Prerefunded to 4/1/19, 5.25%, 4/1/29

    $ 1,000      $ 1,088,190  

Los Angeles Department of Airports, (Los Angeles International Airport), 5.00%, 5/15/35(1)

      2,120        2,345,631  

Los Angeles Department of Airports, (Los Angeles International Airport), (AMT), 5.00%, 5/15/41

      1,500        1,669,530  

Los Angeles Department of Airports, (Los Angeles International Airport), (AMT), 5.375%, 5/15/30

      1,500        1,567,860  

Sacramento County, Airport System Revenue, 5.00%, 7/1/41

      1,500        1,680,435  

San Francisco City and County Airport Commission, (San Francisco International Airport), 5.00%, 5/1/35

      2,760        3,022,062  

San Joaquin Hills Transportation Corridor Agency, 5.00%, 1/15/34

      2,265        2,462,327  
     

 

 

  
      $ 13,836,035  
     

 

 

  

Water and Sewer — 3.6%

      

San Mateo, Sewer Revenue, 5.00%, 8/1/36

    $ 1,700      $ 1,886,558  

Upper Santa Clara Joint Powers Financing Authority, 5.00%, 8/1/41

      1,500        1,722,105  
     

 

 

  
      $ 3,608,663  
     

 

 

  

Total Tax-Exempt Municipal Securities — 152.6%
(identified cost $143,301,588)

       $ 152,941,793  
     

 

 

  

Taxable Municipal Securities — 6.8%

      
Security    Principal
Amount
(000’s omitted)		      Value  

Hospital — 1.8%

      

California Statewide Communities Development Authority, (Loma Linda University Medical Center), 6.00%, 12/1/24

    $ 1,750      $ 1,852,008  
     

 

 

  
      $ 1,852,008  
     

 

 

  

 

3

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Insured-Special Tax Revenue — 3.9%

      

Successor Agency to Roseville Redevelopment Agency, (BAM), 4.066%, 9/1/40

    $ 4,000      $ 3,858,160  
     

 

 

  
      $ 3,858,160  
     

 

 

  

Other Revenue — 1.1%

      

California Infrastructure and Economic Development Bank, (The Scripps Research Institute), 3.42%, 7/1/36

    $ 1,200      $ 1,112,196  
     

 

 

  
      $ 1,112,196  
     

 

 

  

Total Taxable Municipal Securities — 6.8%
(identified cost $6,950,000)

       $ 6,822,364  
     

 

 

  

Total Investments — 159.4%
(identified cost $150,251,588)

       $ 159,764,157  
     

 

 

  

Auction Preferred Shares Plus Cumulative Unpaid Dividends — (3.0)%

       $ (3,000,064 ) 
     

 

 

  

Institutional MuniFund Term Preferred Shares, at Liquidation Value — (46.9)%

       $ (46,975,000 ) 
     

 

 

  

Other Assets, Less Liabilities — (9.5)%

       $ (9,551,112 ) 
     

 

 

  

Net Assets Applicable to Common Shares — 100.0%

       $ 100,237,981  
     

 

 

  

The percentage shown for each investment category in the Portfolio of Investments is based on net assets applicable to common shares.

The Trust invests primarily in debt securities issued by California municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at February 28, 2017, 29.3% of total investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution or financial guaranty assurance agency ranged from 4.4% to 12.9% of total investments.

 

(1) Security represents the municipal bond held by a trust that issues residual interest bonds.

 

(2) Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be sold in certain transactions in reliance on an exemption from registration (normally to qualified institutional buyers). At February 28, 2017, the aggregate value of these securities is $663,306 or 0.7% of the Trust’s net assets applicable to common shares.

Futures Contracts

 

Description

    Contracts      Position      Expiration
Month/Year		      Aggregate Cost     Value     Net
Unrealized
Appreciation
(Depreciation)		  

Interest Rate Futures

                
U.S. 10-Year Treasury Note      38        Short        Jun-17      $     (4,720,538 )    $     (4,733,969 )    $     (13,431 ) 
U.S. Long Treasury Bond      29        Short        Jun-17        (4,406,586 )      (4,398,031 )      8,555  
               

 

 

  
                $ (4,876 ) 
               

 

 

  

 

4

 

 

Abbreviations:

 

AGC

   -   Assured Guaranty Corp.

AGM

   -   Assured Guaranty Municipal Corp.

AMBAC

   -   AMBAC Financial Group, Inc.

AMT

   -   Interest earned from these securities may be considered a tax preference item for purposes of the Federal Alternative Minimum Tax.

BAM

   -   Build America Mutual Assurance Co.

BHAC

   -   Berkshire Hathaway Assurance Corp.

NPFG

   -   National Public Finance Guaranty Corp.
 

 

At February 28, 2017, the Trust had sufficient cash and/or securities to cover commitments under open derivative contracts.

The Trust is subject to interest rate risk in the normal course of pursuing its investment objective. Because the Trust holds fixed-rate bonds, the value of these bonds may decrease if interest rates rise. The Trust enters into U.S. Treasury futures contracts to hedge against changes in interest rates.

At February 28, 2017, the aggregate fair value of open derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) in an asset position and in a liability position and whose primary underlying risk exposure is interest rate risk was $8,555 and $13,431, respectively.

The cost and unrealized appreciation (depreciation) of investments of the Trust at February 28, 2017, as determined on a federal income tax basis, were as follows:

 

Aggregate cost

    $     138,077,781  
  

 

 

  

Gross unrealized appreciation

    $ 10,683,925  

Gross unrealized depreciation

      (832,549 ) 
  

 

 

  

Net unrealized appreciation

    $ 9,851,376  
  

 

 

  

Under generally accepted accounting principles for fair value measurements, a three-tier hierarchy to prioritize the assumptions, referred to as inputs, is used in valuation techniques to measure fair value. The three-tier hierarchy of inputs is summarized in the three broad levels listed below.

 

•   Level 1 — quoted prices in active markets for identical investments

 

•   Level 2 — other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

 

•   Level 3 — significant unobservable inputs (including a fund’s own assumptions in determining the fair value of investments)

In cases where the inputs used to measure fair value fall in different levels of the fair value hierarchy, the level disclosed is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

 

5

 

 

At February 28, 2017, the hierarchy of inputs used in valuing the Trust’s investments and open derivative instruments, which are carried at value, were as follows:

 

Asset Description    Level 1      Level 2      Level 3      Total  

Tax-Exempt Municipal Securities

    $ —      $ 152,941,793      $ —      $ 152,941,793  

Taxable Municipal Securities

      —        6,822,364        —        6,822,364  

Total Investments

    $ —      $ 159,764,157      $ —      $ 159,764,157  

Futures Contracts

    $ 8,555      $ —      $ —      $ 8,555  

Total

    $ 8,555      $     159,764,157      $     —      $     159,772,712  
Liability Description                                

Futures Contracts

    $ (13,431 )     $ —      $ —      $ (13,431 ) 

Total

    $     (13,431 )     $ —      $ —      $ (13,431 ) 

The Trust held no investments or other financial instruments as of November 30, 2016 whose fair value was determined using Level 3 inputs. At February 28, 2017, there were no investments transferred between Level 1 and Level 2 during the fiscal year to date then ended.

For information on the Trust’s policy regarding the valuation of investments and other significant accounting policies, please refer to the Trust’s most recent financial statements included in its semiannual or annual report to shareholders.

 

6

 

 

Item 2. Controls and Procedures

(a) It is the conclusion of the registrant’s principal executive officer and principal financial officer that the effectiveness of the registrant’s current disclosure controls and procedures (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing) provide reasonable assurance that the information required to be disclosed by the registrant on this Form N-Q has been recorded, processed, summarized and reported within the time period specified in the Commission’s rules and forms and that the information required to be disclosed by the registrant on this Form N-Q has been accumulated and communicated to the registrant’s principal executive officer and principal financial officer in order to allow timely decisions regarding required disclosure.

(b) There have been no changes in the registrant’s internal controls over financial reporting during the fiscal quarter for which the report is being filed that have materially affected, or are reasonably likely to materially affect the registrant’s internal control over financial reporting.

Item 3. Exhibits

A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the 1940 Act is attached hereto.

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Eaton Vance California Municipal Income Trust

 

By:   /s/ Payson F. Swaffield
  Payson F. Swaffield
  President
Date:   April 27, 2017

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

By:   /s/ Payson F. Swaffield
  Payson F. Swaffield
  President
Date:   April 27, 2017

 

By:   /s/ James F. Kirchner
  James F. Kirchner
  Treasurer
Date:   April 27, 2017